I 

118TH CONGRESS 

2D SESSION H. R. 9040 

To require covered agencies to issue strategy and implementation plans for 

the transfer of credit, guarantee, and insurance risk to the private 

sector, to require the implementation of such plans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 15, 2024 

Mr. DONALDS (for himself and Mr. KRISHNAMOORTHI) introduced the following bill; which was referred to the Committee on Oversight and Accountability 

A BILL 

To require covered agencies to issue strategy and implementation plans for the transfer of credit, guarantee, and 

insurance risk to the private sector, to require the implementation of such plans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. TRANSFER OF GOVERNMENT CREDIT, GUAR4 ANTEE, AND INSURANCE RISK TO THE PRI5 VATE SECTOR. 

6 (a) GOVERNMENT RISK MANAGEMENT POLICY

7 STATEMENT.— 


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1 (1) MINIMIZATION OF GOVERNMENT RISK.—It 

2 is the policy of the United States to assess, reduce 

3 and minimize the credit, guarantee, and insurance 

4 risk of Federal Government programs in each agen5 cy on an ongoing basis to the maximum extent prac6 tical by transferring all such risk to the private sec7 tor at market terms through a variety of financial 

8 instruments in a sustained and transparent manner. 

9 (2) USE OF PRIVATE RISK CAPACITY.—In the 

10 development and administration of Federal Govern11 ment programs and awards in each agency, it is the 

12 policy of the United States to reduce costs to tax13 payers and to protect taxpayers against catastrophic 

14 losses through prudent and established risk manage15 ment techniques, including the frequent assessment 

16 of Federal credit, guarantee and insurance risks, 

17 and where appropriate, the transfer of risk to pri18 vate markets to the maximum extent practical. 

19 (b) STRATEGY AND IMPLEMENTATION PLAN.— 

20 (1) IN GENERAL.—Not later than 12 months 

21 after the date of the enactment of this Act, and not 

22 less frequently than once every 5 years thereafter, 

23 the head of each covered agency shall submit to the 

24 Director of the Office of Management and Budget, 


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1 and publish in the Federal Register, a strategy and 

2 implementation plan that includes the following: 

3 (A) An identification of any barrier (in4 cluding any policy, law, or regulation)— 

5 (i) to transferring credit, guarantee, 

6 and insurance risk of the covered agency to 

7 the private sector; and 

8 (ii) that would prohibit the covered 

9 agency from paying any costs associated 

10 with such transfer. 

11 (B) An implementation plan for addressing 

12 any such barrier or, in the case of a Federal 

13 statute that is a barrier, a legislative rec14 ommendation to Congress for removing the bar15 rier. 

16 (C) An identification of each office or divi17 sion within the covered agency principally re18 sponsible for programs under which the covered 

19 agency has credit, guarantee, or insurance risk. 

20 (D) An analysis of the use and develop21 ment of private sector capabilities to develop22 ment and administer programs under which the 

23 covered agency has credit, guarantee, or insur24 ance risk. 


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1 (E) The estimated cost or savings of trans2 ferring credit, guarantee, and insurance risk of 

3 the covered agency to the private sector, includ4 ing the expected annual cost or savings— 

5 (i) during a normal year; 

6 (ii) during a year where the losses due 

7 to defaults on such credit, guarantee, or 

8 insurance are lower than normal; and 

9 (iii) during a year where the losses 

10 due to defaults on such credit, guarantee, 

11 or insurance are higher than normal. 

12 (2) PUBLIC COMMENT.—The head of each cov13 ered agency shall provide a 60-day period for public 

14 comment on any strategy and implementation plan 

15 described in paragraph (1) before the date on which 

16 the report is published in the Federal Register. 

17 (c) IMPLEMENTATION.— 

18 (1) IN GENERAL.—The head of each covered 

19 agency may implement a strategy and implementa20 tion plan submitted under subsection (b) to transfer 

21 credit, guarantee, and insurance risk of the covered 

22 agency to the private sector. 

23 (2) REQUIREMENTS.—In any transfer described 

24 under paragraph (1), the head of a covered agency 

25 shall make such transfer— 


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1 (A) under market terms; and 

2 (B) in a transparent manner. 

3 (3) PROHIBITION ON TRANSFERS THAT WOULD

4 INCREASE CERTAIN COSTS.—The head of a covered 

5 agency may not make a transfer described under 

6 paragraph (1) if such transfer would directly result 

7 in an increased fee, premium, or other cost to an in8 dividual. 

9 (d) REPORTS.— 

10 (1) REPORTS BY PRIVATE SECTOR ENTITIES TO

11 COVERED AGENCIES.— 

12 (A) IN GENERAL.—The head of each cov13 ered agency shall require any private sector en14 tity to which the covered agency transfers cred15 it, guarantee, or insurance risk under sub16 section (c) to submit to the covered agency a 

17 regular report that includes a description of any 

18 claim received by the private sector entity with 

19 respect to the transferred credit, guarantee, or 

20 insurance risk, including any amount paid for 

21 any such claim. 

22 (B) AVAILABILITY OF REPORT.—Each re23 port described under subparagraph (A) shall be 

24 made available, upon request, to the Director of 


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1 the Office of Management and Budget and 

2 Congress. 

3 (2) OMB REPORT.—Not later than 18 months 

4 after the date of the enactment of this Act, and not 

5 less frequently than once every 5 years thereafter, 

6 the Director of the Office of Management and Budg7 et shall submit to the President and the Congress a 

8 report containing the following: 

9 (A) A list of credit, guarantee, and insur10 ance obligations under the management or con11 trol of each covered agency. 

12 (B) A list of each credit, guarantee, and 

13 insurance risk transfer program for each cov14 ered agency, with a summary of— 

15 (i) the estimated savings to the Fed16 eral Government related to loss claims as17 sociated with the transferred credit, guar18 antee, or insurance risk; and 

19 (ii) the cost paid by the covered agen20 cy to make such transfer. 

21 (C) The current and aggregate totals of 

22 credit, guarantee, and insurance risk trans23 ferred to the private sector on and after the 

24 date of the enactment of this Act. 


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1 (D) Any recommendations to enhance or 

2 expand the programs described in subparagraph 

3 (B). 

4 (e) COVERED AGENCY DEFINED.—In this section, 

5 the term ‘‘covered agency’’— 

6 (1) means an agency (as defined under section 

7 3502 of title 44, United States Code) that is respon8 sible for the administration of any credit, guarantee, 

9 or insurance program; 

10 (2) means the Federal National Mortgage Asso11 ciation and the Federal Home Loan Mortgage Cor12 poration during any period in which such enterprise 

13 is under conservatorship or receivership pursuant to 

14 section 1367 of the Federal Housing Enterprises Fi15 nancial Safety and Soundness Act of 1992 (12 

16 U.S.C. 4617); and 

17 (3) does not include— 

18 (A) the Social Security Administration; or 

19 (B) the Centers for Medicare & Medicaid 

20 Services. 

Æ 


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